What is the nominal rate of interest at which money will be 5 times itself in 20 years and six months if compounded semi-annually?
A) 0.04%
B) 4%
C) 48%
D) 8%
E) 4.61%

Question

Quizplus · Accepted Answer

The nominal rate of interest can be calculated using the formula for compound interest: $ A = P(1 + \frac{r}{n})^{nt} $. Here, $ A = 5P $, $ n = 2 $ (since it's compounded semi-annually), and $ t = 20.5 $ years. Solving for $ r $ gives approximately 8%.

What Is the Nominal Rate of Interest at Which Money